- Trump says strong dollar puts U.S. at a disadvantage
- Dollar reverses gains
- Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
(Recasts; adds new comment, Trump comments, updates prices)
The dollar fell from a one-year peak on Thursday after U.S. President Donald Trump expressed concern about a strong currency, which he said puts the United States at a disadvantage.
The greenback also gave back some of its gains against the Chinese yuan, which had earlier dropped to a one-year low against the dollar.
In an interview with CNBC, Trump said a strong dollar "puts us at a disadvantage," adding that the Chinese yuan "has been dropping like a rock."
A strong currency tends to make a country's exports more expensive.
Trump's comment "creates friction that creates gridlock all across the governmental environment. That's obviously a solid sign that the dollar could face some weakness ahead," said Juan Perez, senior foreign exchange trader at Tempus Consulting in Washington.
"This is a brand new variable that we have to account for," he added.
This is not the first time that Trump voiced his displeasure with a strong dollar. He told the Wall Street Journal on three separate occasions last year that the dollar was "too strong."
Following his remarks, the dollar index, a gauge of its value against a basket of six major currencies .DXY , fell 0.1 percent to 94.9552, after earlier touching a one-year high at 95.652.
The dollar fell to a one-week low vs the yen, last trading down 0.6 percent at 112.55 yen JPY= .
The euro, meanwhile, fell 0.2 percent against the U.S. dollar to $1.1665 EUR= .
The dollar also cut gains against the yuan in the early afternoon session, and was last at 6.774 yuan, still up 0.4 percent on the day.
So far this year, the yuan has weakened roughly 4.0 percent versus the U.S. dollar.
======================================================== Currency bid prices at 1338 EDT (1738 GMT):Description RIC Last U.S. Pct YTD Pct High Bid Low Bid Close Change Change Previous Session Euro/Dollar EUR= $1.1666 $1.1638 +0.24 -2.75 +1.1678 +1.1575 Dollar/Yen JPY= 112.2500 112.8300 -0.51 -0.37 +113.1600 +112.0900 Euro/Yen EURJPY= 130.94 131.32 -0.29 -3.14 +131.4200 +130.7400 Dollar/Swiss CHF= 0.9968 0.9987 -0.19 +2.31 +1.0043 +0.9960 Sterling/Dollar GBP= 1.3036 1.3068 -0.24 -3.52 +1.3083 +1.2959 Dollar/Canadian CAD= 1.3228 1.3169 +0.45 +5.18 +1.3289 +1.3160 Australian/Doll AUD= 0.7375 0.7397 -0.30 -5.42 +0.7441 +0.7324 arEuro/Swiss EURCHF= 1.1630 1.1625 +0.04 -0.50 +1.1640 +1.1614 Euro/Sterling EURGBP= 0.8947 0.8903 +0.49 +0.72 +0.8955 +0.8902 NZ NZD= 0.6755 0.6792 -0.54 -4.67 +0.6805 +0.6714 Dollar/DollarDollar/Norway NOK= 8.2127 8.1688 +0.54 +0.07 +8.2743 +8.1629 Euro/Norway EURNOK= 9.5806 9.5075 +0.77 -2.72 +9.5905 +9.5073 Dollar/Sweden SEK= 8.8872 8.8648 +0.49 +8.36 +8.9549 +8.8513 Euro/Sweden EURSEK= 10.3689 10.3180 +0.49 +5.38 +10.3820 +10.3138 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-CNY Performance http//reut.rs/2L5WbJX^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
